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<strong>ECS</strong> Offices:<br />

CHINA<br />

Beijing<br />

Chengdu<br />

Guangzhou<br />

Hong Kong<br />

MITA(P) 355/07/2004 ISSUE NINE 2007 www.ecs.com.sg<br />

<strong>SAMSUNG</strong><br />

Faster, Better, Stronger<br />

Market Value:<br />

HP’s channel<br />

strategy for 2007<br />

Shanghai<br />

Shengyang<br />

Shenzhen<br />

Wuhan<br />

Xi’an<br />

Special Edition:<br />

Indonesia<br />

INDONESIA<br />

Balikpapan<br />

Bandung<br />

Denpasar<br />

Jakarta<br />

Semarang<br />

Solo<br />

Surabaya<br />

Ujung Pandang<br />

Jogjakarta<br />

MALAYSIA<br />

Kuala Lumpur<br />

Penang<br />

SINGAPORE<br />

PHILIPPINES<br />

Manila<br />

Cebu<br />

THAILAND<br />

Bangkok*<br />

Chiangmai<br />

Hadyai<br />

Khon-Kan<br />

Nakornrachasima<br />

Pitsanulok<br />

Phuket<br />

Rayong<br />

Suranthanee<br />

*Branches:<br />

• Pantip<br />

• Charn Issara Tower II


ecs post issue nine<br />

Note from Jansen Ek,<br />

Group Chief Operating Officer,<br />

<strong>ECS</strong> Holding <strong>Limited</strong><br />

Faster, Better, Stronger<br />

Communicating is about to get faster and sexier in Singapore.<br />

With the advent of the IDA’s island-wide WiMAX initiative, you<br />

can be sure that mobile communication products will be hot.<br />

On this note, I am proud to announce that <strong>ECS</strong> Singapore is<br />

now the official distributor for Samsung’s SGH-i600 mobile<br />

broadband smartphone. This phone really sets the new<br />

standard with its small form factor and smart design, combined<br />

with HSDPA and Wi-Fi—it is the ultimate smartphone with<br />

immediate email and messaging services.<br />

Just a little larger than a business card, The SGH-i600 offers<br />

connectivity with both Wi-Fi and HSDPA features. A HSDPA or<br />

High-Speed Downlink Packet Access, commonly known as 3.5generation,<br />

transmits data up to six times faster than 3G UMTS technology.<br />

Running on the Windows Mobile 5.0 Operating System, the Samsung Ultra Messaging<br />

i600 is equipped with MS Direct Push Technology that instantly updates email,<br />

calendar, contacts and tasks on Office Outlook. You can also retrieve information<br />

on the move, as the smartphone supports RSS feeds as well as pod-casting, which<br />

allows access to a wealth of information on the latest news on various topics such as<br />

current affairs, travel and health.<br />

The Samsung Ultra Messaging i600 is also equipped with the Piscel Viewer, which<br />

supports MS Word, Excel and PowerPoint formats as well as PDF and various image<br />

formats. One-click access to email attachments enables busy executives on the go to<br />

easily view documents, presentations and spreadsheets.<br />

At play, the powerful multimedia features such as Bluetooth Stereo Music Profile and<br />

Windows Media Player 10 let you enjoy crisp and clear music quality and view videos<br />

on a 2.3” 65K colour QVGA TFT-LCD screen. An external memory slot that supports<br />

up to 2GB MicroSD further allows seamless content streaming of videos. You can also<br />

enjoy other multimedia features, including a 1.3 Megapixel camera with autofocus and<br />

a VGA camera for video telephony.<br />

We have faster products; now we have better support—read our exclusive interview<br />

with Ng Tian Chong, Vice President and General Manager of HP’s Solution Partners<br />

Organization (SPO), Asia Pacific and Japan—on how HP is ramping up their channel<br />

programmes to better support its partners.<br />

Finally in this issue, we get up close with Indonesia and learn from Ivan<br />

Tjahjadi, President of <strong>ECS</strong> Indonesia, on the plans to build a faster, better and<br />

stronger business.<br />

<strong>ECS</strong> Post is published quarterly by <strong>ECS</strong> <strong>Holdings</strong> <strong>Limited</strong><br />

Blk 19, Kallang Avenue, #06-151, Singapore 339410, Tel: 65 6299-9433<br />

All materials printed in <strong>ECS</strong> Post are protected under the Copyright Act. Comments<br />

published in this journal represent views from the editorial team and individual<br />

contributors but not necessarily the views of <strong>ECS</strong> <strong>Holdings</strong> Ltd.<br />

You can also refer to our newly revamped website at www.ecs.com.sg for a soft copy<br />

of <strong>ECS</strong> Post and to keep updated on company announcements.<br />

Editor/Publisher<br />

Sharon Boh-Friberg (sharon.bohfriberg@ecs.com.sg)<br />

To subscribe or advertise in <strong>ECS</strong> Post, please contact the publisher.<br />

Write in<br />

to win<br />

Answer the following questions<br />

and be one of the lucky five<br />

to win a Skype Phone Mouse<br />

1. <strong>ECS</strong> has reported a record-high PATMI<br />

or net profit attributable to equity holders<br />

of $20.1 million, an increase of ____%<br />

compared to the S$17.3 million achieved<br />

in FY 2005.<br />

2. <strong>ECS</strong> has forged many significant<br />

distribution agreements in 2006 to tap<br />

high growth markets and segments such<br />

as with ____ and _______to tap SMB<br />

storage and IP telephony respectively.<br />

3. <strong>ECS</strong> Indonesia currently has a network of<br />

_________ resellers.<br />

Name:<br />

IC no.:<br />

Company:<br />

Designation:<br />

Email:<br />

Contact No:<br />

Only correct and complete entries will be accepted.<br />

One entry per person only.<br />

Email your entry to ecspostquiz@ecs.com.sg<br />

Your entry must be received before 31 May 2007.<br />

Previous<br />

1. <strong>ECS</strong>’ Q3 performance has been described as sterling.<br />

In fact, the quarter result marks the _______________<br />

consecutive quarter that net profit growth has outpaced<br />

revenue growth.<br />

Ans: Seventh<br />

2. During the last quarter, our accessories retail business<br />

continued to grow with the opening of the first and<br />

second shops in Marina Square and Plaza Singapura.<br />

Our third shop at IMM will open in 4Q and will be named<br />

______________.<br />

Ans: Apple Centre<br />

3. <strong>ECS</strong>’ retail business has introduced a privilege card<br />

that offers card holders exclusive discount and offers.<br />

This card is called the _____________ Privilege Card.<br />

Ans: Pacific City<br />

Thank you for the overwhelming response.<br />

Congratulations to the following winners:<br />

1. Ng Eng Siong, Agri-Food & Veterinary Authority of Singapore,<br />

Head Factory Licensing Section<br />

2. Lim Chin Han, Singapore Cord Blood Bank, Quality Manager<br />

3. Ng Wee Hiang Jason, STATSChipPac Pte Ltd, Test Product<br />

4. Quek Nam Kee, NTUC Income, Insurance Adviser<br />

5. Wu Jiale, BGP Geoexplorer Pte Ltd, Accountant


By Tay Eng Hoe,<br />

Group CEO, <strong>ECS</strong> <strong>Holdings</strong> <strong>Limited</strong><br />

Buoyed by robust performance in higher-margin businesses,<br />

improved operational and working capital management<br />

efficiencies, we have reported a record-high PATMI or net<br />

profit attributable to equity holders of S$20.1 million, an<br />

increase of 15.8% compared to the S$17.3 million achieved<br />

in FY 2005.<br />

Internally as we continued to focus on operational and<br />

financial efficiencies, operating profit jumped 28.6% to<br />

S$38.4 million in FY 2006 from S$29.9 million a year ago<br />

and exceeded management’s expectations.<br />

Geographically, China (North Asia) continued to deliver strong<br />

growth in profitability and this is important to us. In China, we<br />

enjoy an enviable position as the number two ICT distributor,<br />

having recently revamped our product mix from high-volume,<br />

thin-margin distribution to higher-margin enterprise systems<br />

in line with the demand environment in that country.<br />

At the same time, Southeast Asia also reported sharp<br />

growth driven mainly by the pent-up ICT demand in emerging<br />

economies.<br />

As the outlook for the Asia Pacific ICT industry continues to<br />

remain bullish, I am confident of our position as a preferred<br />

strategic partner to any global premium ICT player intent on<br />

tapping this region’s growth and in particular of China. Hence<br />

in 2007, we intend to expand our local footprint therein.<br />

Based on the aforementioned full year results, I believe<br />

that we have put in place a firm foundation based on solid<br />

business fundamentals. And we will continue to build on it<br />

for sustained future growth.<br />

<strong>ECS</strong> from the top<br />

A Firm Foundation<br />

For Sustained Future Growth<br />

I am thrilled to say that we have delivered on our promises and we have delivered<br />

well. Our strong results in 2006 underscore the effectiveness of our margin<br />

enhancement strategy. So with revenue growth still as an important, secondary<br />

priority, throughout the past year, we have been concentrating on raising operating<br />

margins. Consequently our performance in 2006 reflects the dedicated commitment<br />

of our group’s management and staff to our multi-tiered programme that repositions<br />

country-specific business thrusts and maximises leverage on local market trends.<br />

Against this backdrop, we have a commendable set of financial results with all three<br />

business segments – distribution, enterprise systems and IT services demonstrating<br />

double-digit PBIT (net profit before interest & tax) growth.<br />

Record $20.1 million net<br />

profit in 2006 as margin<br />

enhancement strategy<br />

starts to pay off<br />

We are ready to jumpstart our expansion into high-growth<br />

market segments. Towards this end, we have been exploring<br />

M&A initiatives in the past year and we are actively engaged<br />

in discussions with potential partners in the region, especially<br />

in Vietnam and India. At the same time, we will continue to<br />

build on our strength as a leading regional ICT distributor and<br />

towards this, we have forged many significant distribution<br />

agreements in 2006 such as with EMC and Avaya to tap<br />

the high growth SMB storage and IP telephony market<br />

segments respectively.<br />

Our plan for sustained future growth also includes our recent<br />

pilot ventures into IT-related accessories and selective<br />

retailing in Singapore in the second half of 2006 when we set<br />

up three initial experimental shops in Marina Square, Plaza<br />

Singapore and IMM.<br />

In 2007, we intend to build on this initial momentum<br />

and will continue to explore business opportunities in IT<br />

accessories and IT retail businesses to complement our<br />

distribution partners.<br />

In sum, 2006 has indeed been a fruitful year for us and I am<br />

optimistic that 2007 will be even better when we enter another<br />

phase in our evolution as a leading ICT player in the region.<br />

Once again, I would like to thank our staff and management<br />

for their single-minded focus and hard work as well as our<br />

vendors, partners, customers and shareholders for their<br />

continued support that has determined <strong>ECS</strong>’ success.<br />

ecs post issue nine<br />

ecs post issue nine


market value<br />

Q: What were the most memorable milestones for SPO in 2006?<br />

A: The most significant milestone for SPO was the<br />

specialization of the sales force. As you know, HP has a<br />

very broad portfolio of products and our channel team is<br />

a horizontal organization representing the PCs, servers,<br />

storage products, printers, and handheld PCs, etc. This<br />

specialization drive was a great momentous task for us.<br />

Today, we have achieved close to 100 percent of our<br />

channel sales reps that manage end-user facing type of<br />

resellers. This means that we have reps that are IPG (Inkjet<br />

Products Group)-specialized; PSG (Personal Systems<br />

Group)-specialized; or even enterprise products-specialized.<br />

In support, we give them specialized training, to improve<br />

the knowledge and skill-sets in their category of products.<br />

HP is very serious about this, and we have invested a lot<br />

of time and resources to identify the right profile of our<br />

reps for specialization, before sending them for specialized<br />

training and certification. In addition, HP has built-up the<br />

appropriate eco-system to support the reps.<br />

Q: Are you seeing any impact of the new initiatives?<br />

A: We are currently into the first quarter of our fiscal year,<br />

so it is still early days, but we are already seeing signs of<br />

better traction across the internal mechanisms and with our<br />

partners. The relationship between the various HP business<br />

units and their channels has benefited from improved and<br />

tighter communication and interaction all around. The<br />

feedback from our regional partners is that our reps are<br />

more knowledgeable, able to take the conversation deeper<br />

than previous times. For example, when the rep is talking<br />

to the partners about enterprise products and the subject of<br />

blade servers comes up. In the past, the conversation stops<br />

there as the rep will say “I will find out from my experts<br />

and get back to you.” Now, the rep will be able to bring the<br />

conversation 2 or 3 levels deeper and even get the right<br />

pricing information for the partners.<br />

ecs post issue nine<br />

HP is the largest channel player<br />

globally with its channel business<br />

accounting for more than two thirds<br />

of its total business.<br />

<strong>ECS</strong> Post recently caught up with Ng Tian Chong, Vice President and<br />

General Manager of HP’s Solution Partners Organization (SPO), Asia<br />

Pacific and Japan to gain some insights into HP’s strategy for 2007.<br />

Q: What about your competition?<br />

A: A lot of our competitors can be considered specialized<br />

already. In fact, HP is now unique with the range of products<br />

and services portfolio. For example, IBM has sold off its PC<br />

business so they are about servers, storage and software.<br />

With Dell, it is the PC; with Canon, Epson, Lexmark, it is<br />

printers and with EMC, it is about storage. This is why it is<br />

important for us to compete well and offer better solutions<br />

moving ahead.<br />

Q: What will be the focus for SPO in 2007?<br />

A: For HP, we have identified the mid-market space as our<br />

focus. By this, I mean the 100-999 staff companies. This<br />

segment has huge potential for all of HP’s products but it<br />

is also a difficult segment as we are talking about microverticals<br />

and verticals where the customers are working in<br />

different groupings, depending on how you look at it. So in<br />

approaching this group, we have to organize our assets and<br />

knowledge such that we can cover this large space in the<br />

most efficient manner. So what we have done in 2006 is to<br />

prepare the foundation for this market segment.<br />

The first thing that we had to do is to understand the customer’s<br />

market segment, how they organize themselves into different<br />

verticals. In short, they have scale. We need to know their<br />

characteristics, how they group themselves and what are the<br />

IT requirements they need in the different groups.<br />

We have worked with our various business units to identify<br />

and understand the top verticals on a country level. As<br />

mentioned earlier, we have also re-organized our channel<br />

team and the key for me is to have a channel map of partners<br />

on a country level. With this, I know which partners are<br />

certified and the various vertical and horizontal solutions<br />

that they carry.<br />

continue on page 8


Lim Tow Cheng<br />

Senior Vice President,<br />

Business Development, <strong>ECS</strong> <strong>Holdings</strong> <strong>Limited</strong><br />

With more than 20 years in trade and IT senior management, Mr. Lim has a well-established<br />

track record of successful revenue growth and corporate expansion across this region.<br />

He was most recently with Western Digital as Director for South Asia. Previously, Mr.<br />

Lim was the CEO of Digiland International <strong>Limited</strong> where he helped to nurture the<br />

Singapore-based firm to a S$1 billion MNC with 12 subsidiaries in 10 countries across<br />

Asia Pacific. Prior to joining Digiland, Mr. Lim held a number of senior management<br />

positions in Singapore’s Trade Development Board (now known as IE Singapore).<br />

We interview Mr. Lim to share some insights on his<br />

work at <strong>ECS</strong>.<br />

Q: Could you briefly describe your role at <strong>ECS</strong>?<br />

A: My key responsibilities are to identify and develop new<br />

business opportunities, drive geographical expansion of the<br />

group and assist in managing the subsidiaries.<br />

Q: How have your experiences helped you in your job?<br />

A: When I was with STDB, I gave advice to local businesses<br />

that were looking to invest overseas. Hence, I have much<br />

exposure to the international business, particularly the<br />

different Asian cultures and the peculiarities of doing<br />

business in Asia. In addition, I have spent many years<br />

setting up many overseas operations across the Asia<br />

Pacific. In short, I am able to provide <strong>ECS</strong> with a broader<br />

perspective on issues; and at the same time, understand<br />

the intricacies of operating businesses in Asia Pacific.<br />

Q: Are the any particular countries that you are focusing on?<br />

A: As you know, <strong>ECS</strong> is always focused on growing the<br />

business in Asia Pacific and my job is to look for viable<br />

business opportunities for further expansion. In this respect,<br />

my initial focus is to build up the business in Indonesia and<br />

the Philippines.<br />

Q: How has <strong>ECS</strong> performed in these countries?<br />

A: In Indonesia, we have already streamlined the operations<br />

and also established the JV in the Philippines. To move<br />

ahead, we have begun to lay stable infrastructure in these<br />

countries and a new ERP system in place. The next step is<br />

to grow new businesses and acquire new brands.<br />

Q: What kind of challenges do you face in your job?<br />

A: Part of my responsibilities is to ensure that the operations<br />

in the various countries run efficiently. The challenge has<br />

always been to manage the different expectations of<br />

companies and people from different cultures and values<br />

and to work out a transition that leads to a standard of<br />

operations that <strong>ECS</strong> is known for in the market.<br />

in profile<br />

“<strong>ECS</strong> is successful because<br />

the key managers – the<br />

CEO level as well as the<br />

second rung managers are<br />

the best-of-breed in the<br />

industry, visionary and<br />

highly committed.”<br />

Q: <strong>ECS</strong> has been doing great work in the various countries. What<br />

do you see as the success factors?<br />

A: The distribution business is a detailed business. As such,<br />

you need quality people who understand the business,<br />

people who have attention to details as we are dealing<br />

with large volumes—we need to stay on top of things like<br />

inventory, receivables, working capital, etc.<br />

You can always build the infrastructure, and you can always<br />

find the money. However, finding the right people to run the<br />

business with similar vision is the most challenging. In this<br />

respect, <strong>ECS</strong> is successful because the key managers – the<br />

CEO level as well as the second rung managers are the bestof-breed<br />

in the industry, visionary and highly committed.<br />

Q: What do you look for in a potential business partner?<br />

A: As you know, <strong>ECS</strong> follows a joint-venture strategy in the<br />

overseas market, and it is extremely difficult to transplant<br />

everything from Singapore. As such, we look for partners<br />

with talented people; established infrastructure and proven<br />

track record. And we help to improve them to a level that<br />

is consistent with our Group. This has been a successful<br />

approach that translates to faster and better business<br />

traction for <strong>ECS</strong>.<br />

ecs post issue nine<br />

ecs post issue nine


INDONESIA<br />

ecs post issue nine<br />

inside <strong>ECS</strong><br />

The Chequered Flag<br />

Themed on the Formula 1 concept,<br />

the <strong>ECS</strong> Technology Partners Night<br />

was held on December 21, 2006 as an<br />

appreciation to Cisco partners. <strong>ECS</strong>,<br />

the Cisco Authorized Distributor was<br />

given the honour of hosting the event<br />

which saw more than 200 attendees<br />

from 70 companies.<br />

In addition, <strong>ECS</strong> Technology<br />

was awarded as the Top Partner<br />

in Indonesia, for the following<br />

categories :<br />

THAILAND<br />

<strong>ECS</strong> Team with F1 concept.<br />

New virtual signing<br />

<strong>ECS</strong> The Best Partner System Integrator<br />

Based on revenue 2006<br />

• PT. Hewlett Packard Berca Servisindo<br />

<strong>ECS</strong> The Best Partner Based on Revenue<br />

2006:<br />

1. PT. Mitra Integrasi Informatika<br />

2. PT. Esa Mandiri Teknologi<br />

3. PT. Intikom Berlian Mustika<br />

4. PT. Signet Pratama<br />

5. PT. Prima Interasi Network<br />

<strong>ECS</strong> The Best Partner 2006 based on retail<br />

and potential growth 2006:<br />

1. Multi Kharisma<br />

2. PT. Tri Indonusa Surya<br />

3. PT. Microreksa Infonet<br />

4. PT. Prodata Sistem Teknologi<br />

<strong>ECS</strong> Thailand has signed up VMware, the global leader in virtual<br />

infrastructure software for industry-standard systems. Already known for<br />

its virtual products on the workstation and server fronts, VMware made<br />

headlines back in 2003 for its foray into virtual infrastructure. The company<br />

has since extended the solution to the enterprise and its latest solution is<br />

the VMware Infrastructure 3, the industry’s first complete infrastructure<br />

virtualization suite to deliver comprehensive virtualization, management,<br />

resource optimization, application availability and operational automation<br />

capabilities in an integrated offering.<br />

PHILIPPINES<br />

Well Done!<br />

Kudos to Philippines team for having garnered accolades from HP for<br />

outstanding performance in 2006. <strong>ECS</strong> Philippines has won awards for<br />

the following:<br />

• HP ISS Wholesaler of the Year<br />

• HP ASP Service Center of the Year<br />

<strong>ECS</strong>M Annua<br />

<strong>ECS</strong> Malaysia held its Annual Dinner &<br />

Dance 2007 at Sunway Lagoon Resort<br />

Hotel in January. The theme for this<br />

event was BOOGIE WOOGIE – GROOVE<br />

to the 70’s and all had to dress to that<br />

theme (see pictures). More than 180<br />

attended the event, including honored<br />

guests from HP, Microsoft, Apple,<br />

Samsung, Lenovo, Canon, Epson,<br />

Linksys, Symantec Adobe, Huawei,<br />

Printronix, Cisco, SUN,IBM Software,<br />

Lexmark, Juniper, Panduit, RedHat,<br />

Motorola, BEA and Attachmate. It was<br />

definitely a fun and memorable night<br />

for all the <strong>ECS</strong> staff and guests.<br />

Winners of Best Dress / <strong>ECS</strong> Idol<br />

- Men and Ladies Top Winners<br />

(From left : Mr Jansen, Mr TF Chong (MD of<br />

Mr Foo (MD of <strong>ECS</strong> Malaysia), Mr CP Loo (Co<br />

Malaysia), Mr JH Soong (Executive Director o<br />

(Asia South Channel Director for SUN) & Mr<br />

Director of Cisco Malaysia)


l D&D<br />

HP Malaysia),<br />

untry Sales Director of Sun<br />

f <strong>ECS</strong> Malaysia), Mr Edwin Yeo<br />

Avinash Gowda (Channel Sales<br />

Jansek Ek, COO<br />

with Best Dressed Winners<br />

Best Dress contest<br />

- Ladies Session<br />

SINGAPORE<br />

New additions to portfolio<br />

In this quarter, <strong>ECS</strong> Singapore has<br />

added new products to its enterprise<br />

portfolio. The company has signed<br />

up Quantum; Plasmon; and D-Link.<br />

Quantum is known for its storage<br />

solutions ranging from software,<br />

storage media, removable drives,<br />

tape drives, autoloaders, diskbased<br />

backups, and tape libraries.<br />

In addition, the completion of its<br />

recent ADIC acquisition establishes<br />

Quantum as the leading global<br />

storage company specializing in<br />

backup, recovery and archive.<br />

Plasmon develops and manufactures<br />

UDO (Ultra Density Optical) drives,<br />

media and optical libraries for secure<br />

data archives and Raidtec Solutions<br />

CHINA<br />

Gearing up for 2007<br />

<strong>ECS</strong> China recently held its 2007<br />

kick-off meeting in Beijing. Chairman<br />

Liuwei and CEO Foong shared their<br />

vision for achieving “steadiness”,<br />

“reformation”, “innovation”<br />

and “excellence”. The team also<br />

formulated goals and strategies<br />

for 2007.<br />

inside <strong>ECS</strong><br />

RAID controllers and network<br />

storage systems for resilient, highperformance<br />

primary storage.<br />

Based on ultra density, blue laser<br />

technology, UDO meets the media<br />

longevity and data compliance<br />

requirements of demanding data<br />

archive environments for small and<br />

large corporations and government<br />

agencies.<br />

Having celebrated its 20-year<br />

anniversary last year, D-Link is known<br />

for its networking solutions. Its<br />

drive to provide high-performance,<br />

standard-based technology that<br />

delivers advanced features with<br />

affordable pricing, will provide <strong>ECS</strong><br />

with new ammunition for the SMB<br />

market front.<br />

The kick-off meeting was followed<br />

by the Spring Festival celebrations<br />

in February where all the staff<br />

toasted to a Happy and Prosperous<br />

New Year ahead.<br />

ecs post issue nine


market value<br />

continued from page 4<br />

This is very important as when HP begins the “attack”<br />

on this segment, our various business units are going to<br />

deploy customer-facing reps, launching demand-generation<br />

activities like road-shows and seminars, bring together<br />

ISVs who carry different solutions. HP SPO will ensure that<br />

these leads generated will be passed on to the right<br />

partner to follow-up. So it is all about getting the channel<br />

eco-system ready.<br />

I am very proud to say that HP is the largest IT vendor with<br />

a very strong set of managed, final-tier partners whom we<br />

are confident to be number 1 in their space, These are bestof-breed<br />

partners. To a certain extent, we also extend the<br />

specialization to the partners, which we call “elite” partners.<br />

For example, we have the elite blade partners (who are top<br />

resellers of our blade server products) and the elite storage<br />

partners, or elite IPG partners for printers. The idea is to<br />

have very strong closed-loop marketing and management<br />

sales cycles so that the leads generated are passed on to<br />

the right partners, especially the “Elite” partners to close<br />

the deals.<br />

Besides the best-in-class final tier resellers, HP also has the<br />

best distributors in the industry, like <strong>ECS</strong>. We look forward<br />

to further improving our supply chain efficiencies with our<br />

distributors and work on programs to help us reach deeper<br />

and wider into the AP markets.<br />

Moreover, we will continue our “attached up-sell and<br />

cross-sell” strategy from 2006. The reason for this is that<br />

it benefits HP as well as the partners. From the partner’s<br />

perspective, if we get the right type accessories, options<br />

and the right programs in place to stimulate the up-sell and<br />

cross-sell, they get the opportunity to increase their margins<br />

by selling the more profitable products. HP certainly has<br />

the right infrastructure to support this and for our PSG and<br />

IPG business, this strategy will continue to be important<br />

for 2007. For example, <strong>ECS</strong> has helped HP a lot here. We<br />

have come up with various programs to ensure that from a<br />

distributor perspective, we can help drive and influence the<br />

final-tier to sell more of our accessories and options.<br />

Q: Do you see any changes in the business climate for<br />

Asia Pacific, and if you could use some of the countries as<br />

examples?<br />

A: Generally, this has remained unchanged. The twin engines<br />

of growth—India and China—are still on everyone’s radar.<br />

They continue to have very strong double digit growth in<br />

the channel business. The approach is now to venture from<br />

the larger cities into what we call tier-5 and tier-6 cities.<br />

ecs post issue nine<br />

Within the Southeast Asia region, the mainstream countries<br />

will continue to offer fairly healthy single digit growth.<br />

However, the real opportunity I see is the Indo-China<br />

market: Vietnam, Sri Lanka, Pakistan, and Bangladesh for<br />

example.<br />

For the mainstream markets, government policies will<br />

certainly help, but this can only go so far in terms of the big<br />

picture. These are “boosters” to the market but in terms of<br />

organic growth, the areas to watch for are India and China.<br />

Q: For the more mature markets, what would you advise the<br />

resellers to do in order to improve customer satisfaction?<br />

A: I think the reseller has several things to balance. They<br />

have to understand their customer and segment trends in<br />

their countries and identify the growth triggers. They need<br />

to be linked to the right solutions and services and offer<br />

the right portfolio to latch on to the growth opportunities.<br />

For the larger countries, the reseller has to think about<br />

geographical expansion as well. Yet, the reseller has to keep<br />

an eye on the IT business, their cost structure, business<br />

models in order to remain competitive.<br />

Q: Are there any new initiatives to foster better communication<br />

with your partners?<br />

A: Our partners interface with HP via our Partner Portal.<br />

We understand the importance of this and have invested a<br />

lot to improve and enhance the Partner Portal experience.<br />

What we have done is to put a lot of relevant materials<br />

on the portal for all our partners, like HP rebate programs<br />

and a weekly update ensures that our partners can access<br />

their score card, like a speedometer to see how fast they<br />

are driving relative to the target. These updates include<br />

resources like technical materials, new product information,<br />

pricing information, etc.<br />

These tie into our specialization initiatives whereby our<br />

partners can now be more productive. More information<br />

is available to them on-line so that they can access them<br />

faster than before.<br />

In March, we are re-launching our loyalty program. Formerly<br />

known as E-Points, the new and improved version will be<br />

called HP AchievePlus Programme. Here, our partners will<br />

get more opportunities to accrue points for selling “sweetspot”<br />

products, “cross-sell/up-sell” attached products, etc.<br />

In addition, a partner who specializes in mid-markets who<br />

achieves training certification will accrue points as well. This<br />

is certainly a more exciting rewards program overall.


Interview<br />

with Ivan Tjahjadi,<br />

President, <strong>ECS</strong> Indonesia<br />

country focus: indonesia<br />

Q: What factors would you attribute to the success of <strong>ECS</strong><br />

in Indonesia?<br />

A: Our extensive network of 1,600 partners and resellers is<br />

one of the leading contributors to our success. In addition,<br />

the strong and long-term relationship we have with the<br />

leading IT vendors - providing us with a comprehensive<br />

range of products from consumer electronics to enterprise<br />

IT, and thus enabling us to penetrate the market deeper<br />

and wider than our competitors.<br />

Not to mention our dedicated team of highly experienced<br />

and competent staff. Most of whom have been with<br />

company for more than 10 years. Our finance team<br />

has also contributed significantly by providing valuable<br />

support to our resellers.<br />

Q: What is the goal of the company in Indonesia?<br />

A: Our current goal is to achieve sustainable profitability<br />

and growth. In the growth area, we are going to focus<br />

and accelerate our expansion plans by adding more<br />

branches and continue looking for more products and<br />

new market segments.<br />

Q: How different is <strong>ECS</strong> from other IT distribution firms in<br />

Indonesia?<br />

A: First of all, we have dedicated and committed people who<br />

are passionate about the business. Their professionalism<br />

really sets the industry benchmark.<br />

<strong>ECS</strong> is also different from the competition by the fact that<br />

we are the leading IT distribution firm in Indonesia and a<br />

leading regional player – making us the preferred partner<br />

as we are able to support our resellers better with a wider<br />

range of products and services.<br />

Q: What new technology will be important for Indonesia?<br />

A: The potential growth segments in Indonesia are 3G<br />

technology and broadband. Today many new products<br />

already support 3G and Wireless, and this will also create<br />

new opportunities for content providers and application<br />

developers.<br />

In terms of infrastructure, we are seeing a lot of roll-outs<br />

in broadband technologies like ADSL and leased-lines.<br />

However, the challenge for the Indonesian government<br />

is the cost of the infrastructure. Then again, these are<br />

early days for broadband, but like telecommunications,<br />

the potential is there when you consider the number of<br />

islands that we have.<br />

ecs post issue nine<br />

ecs post issue nine


country focus: indonesia<br />

Insider Talk Johan Yanto, Sri Setyawati, Catharine Burchan & Mirna Biere<br />

Finance Director Johan<br />

Yanto has been with<br />

<strong>ECS</strong> for 7 months.<br />

I enjoy working at <strong>ECS</strong><br />

because the company<br />

offers several technical<br />

environments and domains<br />

of knowledge.<br />

In my job, I get questions of<br />

a very diverse nature. I’m<br />

learning new things every<br />

day. This is important to<br />

me as I think I would get<br />

bored if I am not constantly<br />

challenged.<br />

Another “plus” factor is<br />

that I have the opportunity<br />

to work in a great team.<br />

They are extremely<br />

knowledgeable, and I’ve<br />

learned a lot from them.<br />

<strong>ECS</strong> is a dynamic company<br />

that gives the employees a<br />

lot of opportunities to grow.<br />

From a business standpoint,<br />

I’d like to see less emphasis<br />

on volume (revenue) and<br />

focus on higher margins.<br />

10 ecs post issue nine<br />

With more 14 years<br />

experience behind her,<br />

Sri Setyawati is the<br />

Consumer Director,<br />

Consumer division/<br />

Business Group for<br />

<strong>ECS</strong> Indonesia<br />

<strong>ECS</strong> has a great working<br />

environment. I’m grateful<br />

to have a good team<br />

here and the full support<br />

from my colleagues and<br />

management.<br />

The management is<br />

always supportive and<br />

encouraging us to excel<br />

in whatever we do.<br />

Prior to joining the<br />

<strong>ECS</strong> family, I was with<br />

Harrisma—one of the<br />

biggest distributors in<br />

Indonesia. Since the jointventure,<br />

we are now known<br />

as <strong>ECS</strong> Indo and I’m proud<br />

to be part of <strong>ECS</strong> team. We<br />

have the opportunity to<br />

learn from other countries<br />

such Singapore and<br />

Thailand, especially in the<br />

area of business strategies<br />

and operational efficiency.<br />

For example, <strong>ECS</strong> has<br />

developed a new IT system<br />

to streamline our sales<br />

processes by optimizing<br />

technology. This has made<br />

us more efficient and faster<br />

in reporting both to resellers<br />

and vendors than our<br />

competitors.<br />

Catharine Burchan,<br />

Business Manager, has<br />

been with <strong>ECS</strong> Indo for<br />

the past 3 years.<br />

I enjoy working at <strong>ECS</strong><br />

as the environment has<br />

a “family culture” which<br />

makes me feel at home.<br />

As a result, I know my team<br />

very well and our teamwork<br />

is very strong. My proudest<br />

moment was when we<br />

finally over-achieved our<br />

Microsoft target. This was<br />

momentous as we had been<br />

on par with our nearest<br />

competitor for the past 7<br />

years, and we have finally<br />

beaten them!<br />

I am proud to be an <strong>ECS</strong><br />

employee, and looking<br />

forward to improve my<br />

skills and knowledge.<br />

In <strong>ECS</strong>, the emphasis is on<br />

teamwork, which makes<br />

it an enjoyable working<br />

environment. Moreover,<br />

we have easy access to<br />

the management team,<br />

hence we are able to solve<br />

problems and nothing<br />

becomes personal. The<br />

proudest moment for me<br />

was when one of<br />

Thoroughly enjoying her<br />

5 years’ stint with <strong>ECS</strong><br />

is Mirna Biere Marketing<br />

Manager.<br />

the vendors issued me<br />

a challenge to create an<br />

“appreciation night” event<br />

better than theirs. Given a<br />

similar budget, I was able<br />

to pull it off and the vendor<br />

conceded to me.<br />

The incident has made me<br />

more determined to excel<br />

in my job. My challenge is<br />

now to make <strong>ECS</strong> better<br />

known in the market, and<br />

focus on improving our<br />

customer satisfaction.


Fast Facts<br />

on <strong>ECS</strong> in Indonesia<br />

Head Office :<br />

Ruko Mangga Dua Square Blok E34-37<br />

Jl. Gunung Sahari Raya No. 1<br />

Jakarta Utara 14420, Indonesia<br />

Telephone : +62.21-62312893, 62312895, 62312897<br />

Yogyakarta Branch :<br />

Jl. Cempaka 34B, Deresan<br />

Yogyakarta 55281, Indonesia<br />

Telephone : +62.274-563639<br />

Surabaya Branch :<br />

Ruko Sentra Fortuna Kav. 23<br />

Jl. Jaksa Agung Suprapto no. 39-41<br />

Surabaya 60272, Indonesia<br />

Telephone : +62.31-5455701, 5456326, 5457268<br />

180 employees as at 20 January, 2007<br />

Senior management team for <strong>ECS</strong> in Indonesia:<br />

• Ivan Tjahjadi, President, <strong>ECS</strong> Indonesia<br />

• Nana Osay, Executive Director<br />

• Tantri Bisono, Executive Director<br />

• Johan Yanto, Finance Director<br />

• Sri Setyawati, Consumer Director<br />

• Setiawan Suryana, IT Director<br />

• Catharine Burchan, Business Manager<br />

• Erlanda, Finance Manager<br />

• Mirna Biere, Marketing Manager<br />

HISTORY AND MILESTONES:<br />

2004<br />

PT. Harrisma Agung Jaya (the “Joint Venture Partners”) formed a joint<br />

venture company in Singapore called “<strong>ECS</strong> Indo Pte.Ltd” (<strong>ECS</strong> Indo);<br />

a 60/40 joint venture between <strong>ECS</strong> Group and Harrisma respectively.<br />

June 2004<br />

<strong>ECS</strong> Indo has been appointed by Microsoft as its distributor in Indonesia<br />

October-December 2005<br />

<strong>ECS</strong> Indo appointed distributor for HP’s imaging and printing consumer<br />

products and services.<br />

January 2006<br />

Announced a new branch in Yogyakarta<br />

May 2006<br />

<strong>ECS</strong> Indo appointed by Acer as its distributor in Indonesia for its PC and<br />

server products.<br />

January 2007<br />

<strong>ECS</strong> Indo appointed by Autodesk as its distributor in Indonesia for<br />

autocad products.<br />

March 2007<br />

<strong>ECS</strong> Indo moves to new building ( Mangga Dua Square )<br />

AWARDS & ACCOLADES<br />

Cisco Best Distributor 2005<br />

HP Distributor of the Quarter – Best in Business Fundamentals<br />

Q1 FY2006<br />

HP Best Distributor for IPG All-in-One Printer 2006<br />

HP Best Distributor for Supplies 2006<br />

Cisco Best Distributor 2006<br />

Vendors :<br />

Acer, Apple, Autodesk, Borland, Cisco,<br />

Hewlett-Packard, Microsoft, Sun Microsystems.<br />

country focus: indonesia<br />

Borland Technology 2006<br />

(Cilantro Lounge)<br />

Games on Indonesia<br />

Independence Day 2006<br />

Business Plan<br />

Meeting 2006<br />

(Mercure Hotel Jakarta)<br />

Gathering 2004 (Carita)<br />

Business Plan Meeting 2005<br />

(Novotel Bogor)<br />

HP Appreciation Night<br />

2006 (SAND’s)<br />

<strong>ECS</strong>-SUN Business Plan Meeting 2006 (Bali)<br />

ecs post issue nine 11<br />

ecs post issue nine 11


1 ecs post issue nine

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